HootSuite Raises $20 Million from OMERS Ventures
Earlier this week Techvibes reported that Vancouver’s HootSuite was on the verge of closing a massive finanacing round. Today it was confirmed.
OMERS Ventures is buying a $20 million ownership stake in Vancouver-based HootSuite via a secondary purchase from the company’s existing shareholders. Word on the street is that the financing pegs that valuation of HootSuite at over $200 million.
HootSuite had previously raised $4.95 million from Blumberg Capital, Hearst Interactive Media, Millenium Technology Ventures and angel investor Geoff Entress, including a $3 million debt bridge that Millenium led in September.
CEO Ryan Holmes has been very transparent in his plans to build HootSuite into a billion dollar company and that has not changed with this financing.
According to an interview with the Wall Street Journal, Holmes sold some shares himself but his vision has not changed. He sold shares, he said, “because I have a vision to build a billion-dollar company…and now I’m a bit de-risked.”
Too often in Canada, entrepreneurs are willing to sell their companies at $50 million or $100 million, Holmes said, “(and) if somebody wants to drop a check in your lap at those prices, it’s life-changing money. But for me, I look at this and say it’s a shame, because so many companies that have huge potential get out too early in this scenario.”
Congrats to HootSuite founders Holmes, Dario Meli, and David Tedman. A billion dollar valuation doesn’t seem that far off now.
